JD Power Cancels Internships: 25 Western University Students Left in Limbo as AI Reshapes Entry-Level Jobs
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JD Power Cancels Internships: 25 Western University Students Left in Limbo as AI Reshapes Entry-Level Jobs

INDUSTRY INSIGHTS
internship
ai
unemployment
students
layoffs
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Summary:

  • JD Power has rescinded summer internship offers for 25 Western University students just weeks before their start dates

  • The company cites AI and automation as reasons for revoking entry-level positions, reflecting shifting business needs

  • Students are left scrambling with no backup plans and limited time to find alternative placements in a competitive job market

  • Youth unemployment in Canada soared over 14% in February, with over half of job losses affecting young workers

  • Western University is providing one-on-one support including employment strategies and mental health resources to affected students

JD Power Rescinds Summer Internships for Western University Students

JD Power has rescinded summer internship offers for more than 20 Western University students just weeks before they were set to join the company, leaving them scrambling with no backup plans. About 25 students are affected, with some engineering students learning of the decision at the end of March for remote co-op placements that were supposed to start in May.

JD Power's London office is located downtown on Dundas and Talbot Streets

JD Power's London office is located downtown on Dundas and Talbot Streets (Isha Bhargava/CBC)

Company Cites AI and Automation as Reasons for Revoking Offers

In a statement, a company spokesperson said JD Power's hiring decisions reflect current and evolving business needs, shifting to artificial intelligence (AI). "The engineering and software landscape is shifting significantly — driven by AI, automation, and changes in how we structure and deliver work. As we align our operating model to those realities, the demand for certain entry-level roles has tempered," wrote Joe LaMuraglia.

JD Power said the decision to revoke the offers wasn't made lightly and it apologizes for the impact on students. The company emphasized this isn't a reflection of the quality of candidates from Western or the value of co-op programs broadly, but rather "a reflection of where our business is today and the kinds of roles we anticipate needing going forward aligned to our current strategy."

Students Left in Difficult Position

Rohan Mandi, a third-year software engineering student, expressed his frustration: "I only have about a month-and-half until the summer starts and most recruiters have already finished recruiting for May so it's definitely been a struggle to find a placement for co-op." Mandi had already signed off his lease and was ready to move back to the GTA with his parents, but now finds himself in a "really tough spot."

Rohan Mandi is a third-year software engineering student at Western University

Rohan Mandi is a third-year software engineering student at Western University (Submitted by Rohan Mandi)

Mandi had applied for three different positions, interviewed for each one in mid-November, and received a 16-month paid offer for a software developer position by early December. He believes internships such as this one are immensely valuable and give students a foot in the door in an already challenging job market.

A Tough Job Market and Competition from AI

Youth unemployment soared more than 14 per cent in February along with the loss of 84,000 jobs across the country, according to Statistics Canada. Over half of the losses were categorized as youth jobs, pushing unemployment among young people in Ontario to more than two per cent higher than the rest of the country.

"The market is really competitive right now, especially with software engineering and just the whole boost of AI, you're starting to see a lot more layoffs so it was great to get some experience in the industry," Mandi said. He added that Western explicitly told students not to pursue other job opportunities if they received an offer, making the late cancellation particularly damaging.

University Response and Student Support

A Western spokesperson said JD Power told the university they were cancelling the incoming cohort on March 19, a few days before the company informed students directly. The internships are optional so they will not impact students' grades or graduation prospects.

The university's student experience team and administration are working one-on-one with the impacted students to provide a variety of supports, including employment readiness strategies, exploring alternative employment opportunities, and mental health resources.

Despite the setback, Mandi remains hopeful: "I'm not letting the loss crush my spirits. I'm hopeful that I will land a co-op placement in the fall semester."

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